For many who HELOC try a second (and never a first mortgage), you will find some cases where you is remove it off inside a section 13 case of bankruptcy.
It’s increasingly unlikely nowadays, however, if the worth of your home is below the new number which you are obligated to pay into no. 1 mortgage, the newest HELOC is not commercially covered up against anything. If for example the worth of your home is increasing or have remained apparently secure, then it’s possible that the fresh lien placed on your property by the the fresh HELOC has been shielded from the property value the house.